DIRECTV 2005 Annual Report Download - page 108

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
Plan Assets
Our target asset allocation for 2006 and actual pension plan weighted average asset allocations at
December 31, 2005 and 2004, by asset categories, are as follows:
Percentage of
Target Plan Assets
Allocation at December 31,
2006 2005 2004
Equity securities .......................................... 50-70% 54% 55%
Debt securities ............................................ 30-50% 35% 35%
Real estate .............................................. 0-20% 2% 2%
Other .................................................. 0-20% 9% 8%
Total ................................................... 100% 100%
Our investment policy includes various guidelines and procedures designed to ensure we invest
assets in a manner necessary to meet expected future benefits earned by participants. The investment
guidelines consider a broad range of economic conditions. Central to the policy are target allocation
ranges (shown above) by major asset categories.
The objectives of the target allocations are to maintain investment portfolios that diversify risk
through prudent asset allocation parameters, achieve asset returns that meet or exceed the Plans’
actuarial assumptions, and achieve asset returns that are competitive with like institutions employing
similar investment strategies.
The investment policy is periodically reviewed by us and a designated third-party fiduciary for
investment matters. We establish and administer the policy in a manner so as to comply at all times
with applicable government regulations.
There were no shares of our common stock included in plan assets at December 31, 2005 and
2004.
Cash Flows
Contributions
We expect to contribute approximately $65.0 million and $16.9 million to our qualified and
nonqualified pension plans, respectively, in 2006.
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